Pricing Your Home

When you want to sell your home, you first need to determine a price. Your initial temptation may be to increase the price you paid until you've reached a satisfactory profit. In reality, however, this probably won't price the home at its true market value.

To figure out what your home is really worth, you need to put aside your personal feelings about the home and ask yourself what homebuyers may actually be willing to pay. It is unwise to base your asking price on emotion. Although it means a great deal to you, homebuyers aren't likely to have any interest in the memories and good times you've had in the home or in the amount of time you spent decorating.

Market conditions are likely to have the most significant impact on the sale price of your home, so take note of whether the homes in your area are priced high or low and if they're selling quickly. Become informed on current interest rates and the local job market, and use this information to determine if it's a seller's or a buyer's market.

To help ensure the success of the transaction, you may want to be more flexible and creative in meeting the needs of the buyers. For instance, you will attract those buyers who want to move immediately if you're willing to close escrow quickly. If you have first-time buyers who need assistance with the down payment, a lease-to-buy option may seem attractive.